REG-Pan African Resources Plc: Royal Sheba Update
30/11/2018 07:05
Pan African Resources PLC
(Incorporated and registered in England and Wales under Companies Act 1985
with registered number 3937466 on 25 February 2000)
AIM Code: PAF
JSE Code: PAN
ISIN: GB0004300496
(“Pan African” or the “Company” or the “Group”)
UPDATE ON BARBERTON MINES’ ROYAL SHEBA PROJECT (“ROYAL SHEBA”)
Shareholders are referred to previous announcements relating to Royal Sheba,
specifically, the announcement of 6 September 2018 pertaining to the update on
the exploration drilling programme and the Mineral Resource Estimate
(“MRE”). The Group has finalised the exploration drilling programme on the
Royal Sheba project and can now provide an updated MRE, signed off by an
independent mining consultant - SRK Consulting (South Africa) Pty Ltd
(“SRK”) in accordance with the South African Code for the Reporting of
Exploration Results, Mineral Resource and Mineral Reserve, 2016 edition (the
“SAMREC Code”). The exploration results have exceeded expectations and the
salient features of the updated MRE are as follows:
*
Royal Sheba’s total Mineral Resources declared and independently signed off
by SRK at 0.8Moz (8.97Mt at 2.62g/t);
*
A 6% increase in the near surface Mineral Resource from 0.35Moz (2.84Mt at
3.81g/t) to 0.37Moz (5.85Mt at 1.96g/t). The updated MRE is considered
conservative, exhibiting a high level of confidence, and the Company believes
there is further exploration upside;
*
The near surface Mineral Resource of 0.37Moz is conducive to open-pit mining;
*
The Royal Sheba Project’s near surface drilling programme (Phase 1, 2 and 3,
totalling 4,311.6m of drilling) confirms robust mineralisation extending from
the surface along a 900m strike and 150m down dip of the Royal Sheba orebody;
*
Summarised drilling results confirms the mineralisation ranges in a width from
5m to 25m with in-situ gold grades ranging between 0.5g/t to 376g/t and
averaging 3.14g/t;
*
The underground Mineral Resource is delineated at 0.39Moz (3.12Mt at 3.87g/t)
and;
*
The Definitive Feasibility Study (“DFS”) undertaken by DRA Global (Pty)
Ltd (“DRA”) is progressing well and is expected to be completed in
February 2019.
The Company has commenced an extended exploration drilling programme at
Barberton Mines’ mining right at New Consort Mines, targeting the Main
Maiden Reef (“MMR”) orebody as a potential satellite deposit for the Royal
Sheba project.
Pan African CEO Cobus Loots commented:
“Pan African is very pleased with the outcome of our in-fill drilling
programme and the updated Mineral Resource Estimate for the Royal Sheba
Project. The drilling programme has confirmed that the orebody extends to
surface, with the potential to establish a new open pit mining operation,
which will transition to an underground mining operation only after a number
of years. The scale and grade of the Royal Sheba Mineral Resource gives us
confidence to advance the near-surface mineral resource to a definitive
feasibility study status, which DRA is currently undertaking, with this full
study expected in February 2019.
We are excited by the further prospectivity of our mining lease specifically
New Consort, where drilling has recently commenced to identify similar
near-surface mineral resources at the Main Maiden Reef orebody, targeting
0.2Moz to 0.3Moz at an in-situ grade of between 2g/t and 4g/t.
Royal Sheba’s opencast has the potential to sustainably increase production
from our flagship Barberton operations at a very competitive cost, further
bolstering Pan African’s low cost, long-life asset portfolio. In conjunction
with the feasibility process, we have commenced work on planning and
permitting. We look forward to working with all stakeholders in advancing this
project, to the benefit of all our stakeholders – including our
shareholders, the Mpumalanga province and the greater Barberton area.”
MRE results
Project geology
The Royal Sheba orebody is associated and aligned along the prominent regional
shear zone of the Sheba Fault, within the north-western quadrant of the
Archaean - aged Barberton Greenstone Belt. The Sheba Fault juxtaposes the Fig
Tree Group’s deep marine sediments, namely the greywacke and banded chert
and carbonatised shale in the Ulundi Syncline, adjacent to the shallow marine
sediments of the Moodies Group in the Eureka Syncline.
The mineralisation of the Royal Sheba orebody is encapsulated in a shear
envelope of the Sheba Fault, ranging in width from 5m to 25m. The gold
mineralisation occurs predominantly in sulphide minerals and as native gold.
In-situ gold grades range up to 376g/t averaging 3.14g/t. The Royal Sheba
orebody has a potential strike length of more than 900m and the down dip
extension has been drill tested to a depth of 600m and remains open. The Royal
Sheba orebody is therefore open ended along strike and down dip.
Drilling results
Drillhole Number Intersection depth downhole (m) Intersection depth below collar (m) Full composite Significant intersection
Corrected intersected width (m) Average grade intersected (g/t) Corrected intersected width (m) Average grade intersected (g/t)
RSPE001 34.75 31.49 11.50 3.38 0.65 19.16
RSPE002 56.63 51.32 9.89 2.53 3.28 5.10
RSPE003 24.34 22.06 12.94 0.91 1.36 2.31
RSPE004 47.32 42.89 6.28 1.36 0.62 5.96
RSPE005 26.34 23.87 15.59 1.91 0.34 9.96
RSPE006 35.02 31.74 8.77 1.41 3.50 2.98
RSPE007 26.73 24.23 14.17 1.38 2.13 5.45
RSPE008 6.97 6.32 13.60 3.17 1.81 12.79
RSPE009 69.56 63.04 11.48 6.10 1.73 30.43
RSPE010 25.54 23.15 8.01 0.63 1.00 2.12
RSPE011 38.70 35.07 8.33 0.72 1.05 1.83
RSPE012 24.05 19.70 24.05 1.53 2.42 6.35
RSPE013 67.91 61.55 10.97 2.67 5.96 3.37
RSPE014 42.88 35.13 7.83 1.50 3.80 2.51
RSPE015 60.23 13.55 8.51 0.62 1.60 2.32
RSPE016 84.59 10.31 13.85 1.38 3.11 3.12
RSPE017 68.87 49.54 15.98 0.84 1.83 2.22
RSPE018 105.10 89.13 21.54 0.25 0.91 1.01
RSPE019 56.96 18.54 18.60 0.47 0.30 4.97
RSPE020 92.54 67.68 8.84 0.33 1.23 1.71
RSPE026* 153.55 26.66 6.27 0.52 1.93 1.07
RSPF001 105.00 95.16 4.32 0.68 1.07 1.37
RSPF004 54.10 49.03 9.54 0.20 0.39 1.00
RSPF005 45.50 41.24 7.52 0.15 0.29 0.76
RSPF006 53.73 48.70 8.73 0.35 0.31 1.32
RSPF010* 110.22 99.89 32.62 0.13 0.35 0.82
RSPF011* 98.30 89.09 1.76 0.39 0.37 0.76
RSPF012* 150.73 136.61 8.07 0.20 0.76 0.77
RSPF014* 137.98 125.05 6.86 0.64 0.75 2.85
RSPF016* 74.53 67.55 8.10 0.23 0.40 0.32
* Drill holes not incorporated into the updated MRE due to the assaying results being released after completion of the MRE. The assay results of an additional nine drill holes’ assay results are still outstanding. All drill hole results will be incorporated into the annual Mineral Resource update.
The in-fill drilling programme of 4,311.6m (Phase 1, 2 and 3) comprising 39
drill holes was completed in November 2018. The 25 drill-hole results
presented above were used in the updated MRE, confirming robust mineralisation
extending from surface over a strike length of more than 900m at grades above
economic break-even concentrations (0.5g/t).
Mineral Resource
SRK audited the updated geological model and MRE for the Royal Sheba Project
and is of the opinion that the Mineral Resource statement, as tabulated below,
effective 27 November 2018, is a reasonable representation of the in-situ
grade, tonnage and metal content as contained in the mineralised envelope. Mr.
Ivan Doku, who is responsible for the audit on behalf of SRK, has signed off
on the Mineral Resource statement below.
The following new Mineral Resource tabulation has been reported from the 3D
geological model and resource block model, using a 0.5g/t cut-off grade for
near-surface ore (within a ZAR 600 000 per kilogram of gold Whittle pit shell
at a revenue factor of 1.5) and 1.7g/t for down-dip extensions to be mined
from underground workings. The underground Mineral Resource excludes a 30m
crown pillar beneath the pit and is reported within the modelled
mineralisation envelope based on current drill holes available.
Contained gold
As at 30 June 2018 Category Tonnes Grade Tonnes Ounces
(Million) (g/t) (Gold) (K’oz)
Open-pit Mineral Resource (0.5g/t cut-off) Measured 3.10 2.10 6.52 210
Indicated 2.32 1.84 4.28 138
Inferred 0.43 1.56 0.67 22
Total 5.85 1.96 11.47 369
Underground Mineral Resource (1.7g/t cut-off) Measured 0.95 3.62 3.45 111
Indicated 1.52 4.24 6.46 208
Inferred 0.64 3.38 2.16 69
Total 3.12 3.87 12.07 388
Resources Total 8.97 2.62 23.54 757
Mineral Resources are reported in accordance to the South African Code for the
Reporting of Exploration Results, Mineral Resources and Mineral Reserves
(SAMREC) Code. Mineral Resources would be the same if it is reported according
to the guidelines of the Canadian Institute of Mining’s (CIM) National
Instrument 43-101. Cut-off values are calculated at 0.5g/t and 1.7g/t for
open-pit and underground Resources, respectively, applying a gold price of ZAR
600 000/kg (USD 1 435/oz and ZAR 13.00/1 USD). Mineral Resources are
reported inclusive of Mineral Reserves. Open-pit Mineral Resources are
reported within an optimised ZAR 600 000 per kg Au pit shell with a revenue
factor of 1.5. All Mineral Resources reported exclude geological structures
and a crown pillar of 30m below the open-pit shell. Mineral Resources are
reported as in-situ tonnes. Any discrepancies in totals are due to rounding.
Additional effects of geological, mining and recovery losses have been
considered in the cut-off grade calculations.
Exploration
The Company has achieved its objective of generating 0.37Moz (5.85Mt and
1.96g/t) near-surface Mineral Resources for the Royal Sheba Project and is now
exploring the Jamestown Shear Zone, within the New Consort mining right for
near-surface Mineral Resources. The exploration team is excited to advance the
prospective MMR orebody at New Consort. This brownfield project targets
near-surface mineral resource definition drilling to yield between 0.2Moz to
0.3Moz, at grades between 2g/t and 4g/t.
The exploration programme comprises of two phases. Phase 1 drilling commenced
on 13 November 2018 and will comprise 10 drill holes, totalling 1,035m,
testing 600m of strike length and 200m of dip extension of the MMR orebody and
the associated Consort Bar. Phase 2 will comprise a further 11 drill holes,
totalling 1,350m, which will test a further 500m of westerly strike and dip
extension of the MMR deposit.
Several historic satellite deposits have also been identified in the Jamestown
Shear Zone and Sheba Hills namely the Bluejackets, Betty, Hard Cash and No. 3
Shaft orebodies, as well as Clutha, Golden Quarry, Oriental Quarry, Eureka,
Margaret and Sheba West for resource definition drilling.
Next steps
A DFS for the development of the Royal Sheba Project is being undertaken by
DRA which is progressing well and is expected to be completed in February
2019. Pan African has also started with the process of obtaining the
regulatory permitting required for the project.
The information contained in this announcement has not been reviewed or
reported on by Pan African’s auditors and is the responsibility of the
directors of Pan African.
The competent person for the Mineral Resource is Mr Hendrik Pretorius, the
Group Project Geologist, who signs off the Mineral Resources for Evander Mines
and Barberton Mines Limited. He is a member of the South African Council for
Scientific Professions (400051/11 – Management Enterprise Building, Mark
Shuttleworth Street, Innovation Hub, Pretoria, Gauteng Province, South
Africa), as well as a member in good standing of the Geological Society of
South Africa (GSSA – CSIR Mining Precinct, Corner Rustenburg and Carlow
Roads, Melville, Gauteng Province, South Africa). Mr Pretorius has 15 years of
experience in economic geology and mineral resource management (MRM). Mr
Pretorius holds a BSc. (Hons) degree in Geology from the University of
Johannesburg as well as a Graduate Diploma in Engineering (GDE) from the
University of the Witwatersrand. He is based at The Firs Office Building, 2nd
Floor, Office 204, Cnr. Cradock and Biermann Avenues, Rosebank, Johannesburg,
South Africa. Mr Pretorius has confirmed in writing that he has reviewed the
information disclosed in this announcement, which is compliant with section 12
of the JSE Listings Requirements and Table 1 of the SAMREC Code, and that it
may be published in the form and context in which it is intended.
For further information on Pan African, please visit the Company’s website
at www.panafricanresources.com
30 November 2018
Contact information
Corporate Office The Firs Office Building 1st Floor, Office 101 Cnr. Cradock and Biermann Avenues Rosebank, Johannesburg South Africa Office: + 27 (0) 11 243 2900 Facsimile: + 27 (0) 11 880 1240 Registered Office Suite 31 Second Floor 107 Cheapside London EC2V 6DN United Kingdom Office: + 44 (0) 207 796 8644
Cobus Loots Pan African Resources PLC Chief Executive Officer Office: + 27 (0) 11 243 2900 Deon Louw Pan African Resources PLC Financial Director Office: + 27 (0) 11 243 2900
Phil Dexter St James's Corporate Services Limited Company Secretary Office: + 44 (0) 207 796 8644 John Prior / Paul Gillam Numis Securities Limited Nominated Adviser and Joint Broker Office: +44 (0) 20 7260 1000
Taryn Carter One Capital JSE Sponsor Office: + 27 (0) 11 550 5000 Ross Allister/James Bavister/David McKeown Peel Hunt LLP Joint Broker Office: +44 (0) 207 418 8900
Julian Gwillim Aprio Strategic Communications Public & Investor Relations SA Office: +27 (0)11 880 0037 Jeffrey Couch/ /Thomas Rider BMO Capital Markets Limited Joint Broker Office: +44 (0) 207 236 1010
Bobby Morse Buchanan Public & Investor Relations UK Office: +44 (0)20 7466 5000 Email: PAF@buchanan.uk.com
Website: www.panafricanresources.com
Glossary of technical terms:
Au Chemical symbol for gold
Cut-off Grade The lowest grade value that is included in a resource statement
Grade The proportion of a mineral within a rock or other material. For gold mineralisation this is usually reported as grams of gold per tonne of rock (g/t)
g/t Grams per tonne
Indicated Mineral Resource That part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for
continuity to be assumed
Inferred Mineral Resource That part of a mineral resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that may be limited, or of uncertain quality and reliability
Life of Mine The time in which, through the employment of the available capital, the ore reserves--or such reasonable extension of the ore reserves as conservative geological analysis may justify--will be extracted.
M Metre
Mineral Resource A concentration or occurrence of material of economic interest in or on the Earth's crust in such a form, quality, and quantity that there are reasonable and realistic prospects for eventual economic extraction. The location, quantity, grade, continuity and other geological characteristics of a Mineral Resource are known, estimated from specific geological knowledge, or interpreted from a well constrained and portrayed geological model
Measured Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity
Moz Million troy ounces
Orebody Mining term to de?ne a solid mass of mineralised rock which can be mined pro?tably under current or immediately foreseeable economic conditions. "Ore" a mineral deposit that can be extracted and marketed profitably
Ore Reserves The economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined
Ounce / oz Troy ounce, equivalent to 31.103477 grams
Probable Mineral Reserve The economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified
Proven Mineral Reserve The economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified
t Tonne (1-million grams)
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